In an effort to improve the efficiency of its investigations, Ontario’s Ministry of Finance is proposing to relax the delivery requirements for summonses from the Ontario Securities Commission (OSC).
Following a recommendation from the province’s Capital Markets Modernization Taskforce, the government is proposing to ease the requirements for the OSC when delivering summonses in the course of enforcement investigations — doing away with the provision requiring the regulator to deliver summonses in-person.
Under the proposal, investigative summonses could either still be delivered directly to the target of the summons, left with an adult at their last known residence, delivered to the target’s lawyer, or through other methods including email (provided that receipt is acknowledged).
“The amendments would provide flexibility in serving summonses to individuals and companies and reduce delays in serving summonses,” the government said in a notice Wednesday, detailing its proposal.
Per the proposed changes, the OSC would also specify when the service of a summons is considered effective, as well as the prescribed forms to be used for serving a summons.
“These amendments would provide greater operational flexibility to the OSC in the serving of summonses and would improve the efficiency of their investigations,” the finance ministry said.
Further, the proposed changes would provide the OSC with a “more-cost effective means to serve summonses” and that the targets of these demands from the regulator “will benefit from the discretion afforded by these alternate means of service,” the ministry said.
The province’s capital markets taskforce recommended the change in its final report in 2021, noting that “the personal service requirement was outdated considering acceptable alternatives are available in an increasingly digitized capital markets sector.”
The government said the amendments would also align with the service requirements in other sorts of provincial legislation, and the methods used by other financial market regulators, such as the Financial Services Regulatory Authority of Ontario.
The proposal is out for comment until Oct. 18.